Posted on September 22, 2016 by Editorial Staff in Oil & Gas
Gulf Keystone in Iraqi Kurdistan. Photo: Courtesy/Gulf Keystone
LONDON,— Gulf Keystone Petroleum, an oil company focused on Iraqi Kurdistan, warned on Thursday that a lack of export payments from the regional government was preventing it from investing there.
The oil producer has not been reimbursed for exports of crude in July and August, the first interruptions to steady monthly payments from the Kurdistan Regional Government in a year.
“This is obviously a concern for us. We don’t know why we’renot being paid,” Gulf Keystone Chief Executive Jon Ferrier told Reuters.
“We can afford to start spending tomorrow if we wanted to but I’ve got to be confident we’re getting the money in on a monthly basis.”
The company, which is going through a debt-for-equity restructuring, said it wants to invest to bring production at its Shaikan oilfield to 55,000 barrels per day (bpd). It produced an average of 33,000 bpd in the first half of the year.
Gulf Keystone expects its restructuring deal to conclude around Oct.14, an agreement that will reduce the company’s debt to $100 million from $600 million.
The debt-for-equity swap will leave some of Gulf Keystone’s biggest bondholders with significant shares in the company.
“What’s going to be quite interesting is how theshareholding structure could evolve. It will depend on how theshare price evolves,” said Sami Zouari, Gulf Keystone’s chieffinancial officer.
The company’s new shareholder base will be very diverse, including some distressed debt funds.
Gulf Keystone reported on Thursday a $60 million loss aftertax for the first six months of the year, a slight improvement from a $78 million loss a year earlier.
The company had revenue arrears of $28 million at the end of June.